Since China took part in WTO in November in 2001, the use of cotton increased more than 900 thousand ton per year by the average, the scale of production widened, the total yield enhanced, the price of cotton met the international level with a strong rise and fall, the main product value of cotton and the income of cotton peasanfs both increased for two years and decreased for one year with a big fluctuation range. The importation amount of raw cotton enormously increased with a net import of 2.6 million ton, which made a strong strike on the homemade raw cotton. In the past three years, the total sum of importation of raw cotton, cotton yam and cotton woven fabric were 14,013 million dollars, it was smaller than the total sum of exportation, which was 18,474 million dollars, that means there was a favorable trade balance of 4,234 million dollars. In the chain of cotton industry, there were 4,097 million dollars deficit of raw cotton, 399 million dollars deficit of cotton yarn, and 8,930 million dollars surplus of cotton woven fabric. All these revealed that cotton woven fabric was the most favored one in the chain of cotton industry, cotton yam was the second one, and raw cotton was the least one or the most one suffered from strike. There was nonequilibrium profit in these sub-industries.